Tuesday, 26 February 2013

Questions (306)

Pearse Doherty

Question:

306. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation further to the announcement of the loan guarantee scheme for small and medium enterprises in budget 2012 announcements of December 2011, the total amount that has been to date extended to SMEs under the scheme and the number of SMEs to which that total relates. [9759/13]

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Written answers (Question to Jobs)

The Credit Guarantee Scheme is operational since 24th October 2012. There are currently 14 approved guaranteed loans resulting in €1.5m of additional lending being provided to viable companies as of close of business on 15th February 2013. As a result of the sanctioned lending it is expected that there will be 113 new jobs created and 19 jobs will be maintained.

The scheme has been designed to address market failure affecting certain SMEs on the margins of commercial lending decisions, who, because of a lack of collateral or because of the sector they operate in, face difficulties in accessing traditional bank credit. The Department and the Operator are in regular contact with the participating banks to improve take-up of the scheme, however, the Deputy will be aware that the Scheme is demand- led. Potential borrowers are being advised to contact the participating banks directly. The Department will of course keep a close eye on developments in respect of the scheme as matters unfold.